IAB Australia

News
31st May 2007

First PricewaterhouseCoopers online report finds sustained market growth

Online advertising has continued to build, with activity in the first quarter for 2007 reaching $294,000,000, a 50.8 percent growth on Q1 2006 and the largest first-quarter recorded. General Display advertising and Classifieds advertising accounted for 26% and 27% of the total advertising expenditure for the first-quarter 2007, respectively, while Search and Directories advertising comprised the remaining 47%.
The figures were included in the Online Advertising Expenditure Report released today by PricewaterhouseCooopers (PwC) for IAB Australia.

Search and directories continued to surge ahead in market growth, recording $139,500,000 during Q1 2007 and an 84.8 percent growth on the comparable quarter in 2006. General Display and Classifieds recorded 30.4 percent and 28.2 percent growth rates over the same period, though they both recorded decreases of 18 percent and 11 percent respectively for Q1 compared to the reported Q4 2006 results.

IAB Australia General Manager, Patty Keegan, said: “Q1 data showed the seasonal trend of a slight softening in the growth online advertising, but the market is undoubtedly continuing to climb. This Q1 result provides a strong foundation for significant continued growth of the online advertising industry which experienced approximate 60 percent growth in the 2006 calendar year.”

In General Display advertising finance topped the industry categories with 23.6 percent market share in Q1, Computers and Communications following with 14.3 percent and Motor Vehicles at 13.7 percent. Recruitment, Real Estate and Automotive continue to be the leading categories for Classified Advertising expenditure.

The Q1 2007 Online Advertising Expenditure Report is the first to be prepared by PwC following its appointment in late 2006. PwC has assumed responsibility for collecting the financial data from all participating companies.

IAB Australia is actively encouraging as many industry participants as possible to be a part of the report and dgm Australia has contributed data for the first time to this report. IAB Australia and PwC are working with the MFA to identify and approach further organisations to contribute to the report data. The consultation process has also initiated a discussion of industry categories reported as part of the General Display market with a view to reviewing these categories so the report has greater relevance to users of the report.

Report Methodology
With the exception of Search and Directories, the March 2007 OAER does not include any estimates for non-contributors. The Search and Directories category includes an estimate of advertising expenditure received by Google, the largest company in the Search market. Due to estimates not being included for non-survey contributors for the General Display and Classified categories, these markets can be considered larger than as reported in the OAER.

Report Availability
The Online Advertising Expenditure Report will be freely available to download from the IAB Australia website from 1st June 2007. In future, interested parties may also register to receive the IAB newsletter which will links to each quarterly Report as it is issued.
Ends

About the Interactive Advertising Bureau
IAB Australia officially launched in October 2005 with Australia’s six major online publishers -Fairfax Digital, Google, News Digital Media, ninemsn, Sensis, and Yahoo!7 - together with the Australian Interactive Media Industry Association (AIMIA) as its founding members. The IAB now has an additional 26 member companies, drawn from a broad spectrum of online advertising and marketing organizations, technology and services companies.

The group has three key priorities: to promote the standardisation of ad formats; to ensure timeliness and transparency of industry data, and to educate the marketplace about the value of online advertising.

For further information about IAB Australia please visit: www.iabaustralia.com.au

	News 31st May 2007 First PricewaterhouseCoopers online report finds sustained market growth Online advertising has continued to build, with activity in the first quarter for 2007 reaching $294,000,000, a 50.8 percent growth on Q1 2006 and the largest first-quarter recorded. General Display advertising and Classifieds advertising accounted for 26% and 27% of the total advertising expenditure for the first-quarter 2007, respectively, while Search and Directories advertising comprised the remaining 47%. The figures were included in the Online Advertising Expenditure Report released today by PricewaterhouseCooopers (PwC) for IAB Australia. Search and directories continued to surge ahead in market growth, recording $139,500,000 during Q1 2007 and an 84.8 percent growth on the comparable quarter in 2006. General Display and Classifieds recorded 30.4 percent and 28.2 percent growth rates over the same period, though they both recorded decreases of 18 percent and 11 percent respectively for Q1 compared to the reported Q4 2006 results. IAB Australia General Manager, Patty Keegan, said: “Q1 data showed the seasonal trend of a slight softening in the growth online advertising, but the market is undoubtedly continuing to climb. This Q1 result provides a strong foundation for significant continued growth of the online advertising industry which experienced approximate 60 percent growth in the 2006 calendar year.” In General Display advertising finance topped the industry categories with 23.6 percent market share in Q1, Computers and Communications following with 14.3 percent and Motor Vehicles at 13.7 percent. Recruitment, Real Estate and Automotive continue to be the leading categories for Classified Advertising expenditure. The Q1 2007 Online Advertising Expenditure Report is the first to be prepared by PwC following its appointment in late 2006. PwC has assumed responsibility for collecting the financial data from all participating companies. IAB Australia is actively encouraging as many industry participants as possible to be a part of the report and dgm Australia has contributed data for the first time to this report. IAB Australia and PwC are working with the MFA to identify and approach further organisations to contribute to the report data. The consultation process has also initiated a discussion of industry categories reported as part of the General Display market with a view to reviewing these categories so the report has greater relevance to users of the report. Report Methodology With the exception of Search and Directories, the March 2007 OAER does not include any estimates for non-contributors. The Search and Directories category includes an estimate of advertising expenditure received by Google, the largest company in the Search market. Due to estimates not being included for non-survey contributors for the General Display and Classified categories, these markets can be considered larger than as reported in the OAER. Report Availability The Online Advertising Expenditure Report will be freely available to download from the IAB Australia website from 1st June 2007. In future, interested parties may also register to receive the IAB newsletter which will links to each quarterly Report as it is issued. Ends About the Interactive Advertising Bureau IAB Australia officially launched in October 2005 with Australia’s six major online publishers -Fairfax Digital, Google, News Digital Media, ninemsn, Sensis, and Yahoo!7 - together with the Australian Interactive Media Industry Association (AIMIA) as its founding members. The IAB now has an additional 26 member companies, drawn from a broad spectrum of online advertising and marketing organizations, technology and services companies. The group has three key priorities: to promote the standardisation of ad formats; to ensure timeliness and transparency of industry data, and to educate the marketplace about the value of online advertising. For further information about IAB Australia please visit: www.iabaustralia.com.au
	© 2007 IAB Australia